2010 International Perforating Symposium Presentation IPS-10-011 IPS-10-011

StimGun KODIAK Enhanced Perforating System Initial Concept Technical Challenges Progress HTH Technical Services, Inc. Joe Haney Owen Oil Tools (CoreLab) Dan Pratt, Chris Montanez, Mike Miller IPS-10-011

The Beginning 1992 – David Cuthill and Bob Haney 2007 – HTH and Owen Combine perforating with propellant stimulation Surface Test - propellant inside gun Problem with propellant 2007 – HTH and Owen Start development of a new type of propellant IPS-10-011

Initial Concept IPS-10-011

Quick and Simple Perforation Breakdown PERFORATING CHARGES KODIAK Enhanced Perforating System PELLET IPS-10-011

Why? Initially, the thought was to enhance the perforating process when you can’t run the StimGun Assembly™ Wells with minimal fluid column (< 500 ft) Wells with complex or difficult casing or tubing configurations Very short intervals Limited Entry IPS-10-011

Enhanced Perforating? Change in focus - from charge penetration to flow Formation breakdown IPS-10-011

Quick and Simple Perforation Breakdown Technical Challenges IPS-10-011

Propellant Rapid, but controlled, burn rate Reduced sensitivity of burn rate to pressure Extremely low sensitively to shock, friction, impact, and static electricity IPS-10-011

Gun Integrity For standard and non-standard operating conditions – zero potential for failure needed Gun expansion – within set limits IPS-10-011

Adequate Rate of Venting of Gases We need a high pressure pulse in the perforation tunnel We have to go through two “chokes” Both the perforation exit hole in the gun and the in the casing are of critical importance IPS-10-011

Propellant Development Five different propellant / energetic materials selected for evaluation IPS-10-011

Testing, Testing, Testing IPS-10-011

Testing, Testing, Testing IPS-10-011

Surface Tests IPS-10-011

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Internal Gun Pressure Data IPS-10-011

Gun Integrity All systems “dry” tested All systems “fluid” rated Over 100 tests No problems IPS-10-011

Venting IPS-10-011

Multiple new charge and scallop designs evaluated IPS-10-011

Product Development Review IPS-10-011

Propellant Requires high order detonation to fully ignite Requires minimum charge gram weight to disk thickness to fully ignite IPS-10-011

Gun Integrity No problems – for the “system” IPS-10-011

Venting The current system with specially designed charges, it is adequate IPS-10-011

Final Design Configuration Balance Between Venting Capacity Burst Pressure of Gun Burn Rate Propellant Volume IPS-10-011

KODIAK Enhanced Perforating System Surface Test IPS-10-011

Quick and Simple Perforation Breakdown Progress IPS-10-011

Downhole Testing Wyoming Montana Texas IPS-10-011

MOC Gov’t 4 IPS-10-011

Does Kodiak work? Yes Rapid rise time High Pressure 5 ms pulse IPS-10-011

Montana Tests 6’ x 3 3/8” x 4 spf x 60 deg guns Shallow gas 5½” casing 1700’ depth 50’ to 200’ tamp fluid Four runs (2 wells) No operational problems Gun expansion OK No wireline damage No packer problems (all zones – packer was close) IPS-10-011

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On to Commercial Testing Texas TCP – vertical well 11’ x 3 3/8” x 4spf Corkscrewed 120’ used J-55 tubing, the 60’ of new N-80 above gun was fine Lesson learned On to Commercial Testing IPS-10-011

KODIAK Enhanced Perforating System – First Commercial Tests Successes Shallow gas wells IPS-10-011

KODIAK Enhanced Perforating System – First Commercial Tests Problems Inadequate venting rate at depth Flaw in the Initial Concept IPS-10-011

Flaw in the Initial Concept Simple operation to breakdown perforations Not that simple You need energy (a lot of energy) to breakdown perforations With a lot of energy, you can have problems with wireline, tubing, plugs and packers Different formations have different energy requirements IPS-10-011

Back to Testing IPS-10-011

Montana Testing Improved Venting Reduced Propellant Load Series One IPS-10-011

Series Two IPS-10-011

Lesson Learned - Operations We have determined that simply reducing propellant load to 85% and setting some fairly basic procedural guidelines - eliminates a majority of the potential operational issues IPS-10-011

Product Applications IPS-10-011

Current Enhanced Perforating / Perforation Breakdown Shallow wells (<5000’) IPS-10-011

Near - Future Propellant Stimulation / Perforation Breakdown Moderate depth wells (<10,000’) Limited Entry Horizontal wells IPS-10-011

Path Forward IPS-10-011

We are excited about potential of the technology It work’s (although it is not quick and simple) There are several commercial applications that we are now focusing on IPS-10-011

In Conclusion IPS-10-011

KODIAK Has tremendous potential to improve the perforating process Fits well into the StimGun family of products IPS-10-011

Questions? Comments? IPS-10-011

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